www.pwc.com APEC CEO Survey press conference Lima, Peru 17th November 2016
Outlook for business growth
About the Survey The voice of 1,154 business leaders. Every APEC economy is represented The 21 APEC economies generate 54% of world GDP, 44% trade and are home to 41% of people 55% respondents in organisations with more than $1bln in revenues, in its role as Knowledge Partner to the APEC CEO Summit has produced seven APEC CEO surveys
CEO confidence in revenue growth prospects continues to be fragile Some improvement overall Very confident 2016 2015 2014 2013 2012 2016 2015 2014 2013 2012 28% 28% 46% 43% 36% But no change in key measure of CEO optimism APEC CEOs very confident in revenue growth APEC CEOs NOT very confident in revenue growth Somewhat confident Not very confident Not at all confident 19% 8% 12% 15% 3% 5% 2% 3% 2% 27% 49% 39% 43% 41% 46% 36% 15% 43% 12% 46% 8% 28% 27% 28% 19% 2016 2015 2014 2013 2012 28% 2012 2013 2014 2015 2016
Two areas where CEO confidence is notably flagging: Generating returns on innovation and overseas operations Where conditions are about the same as last year What s become more challenging More confident 2016 More confident 2015 More confident 2016 More confident 2015 Increasing profit margins in domestic ops 2016 2015 22% 24% Launching a new product or service 2016 2015 20% 32% Securing talent to perform globally 2016 2015 18% 20% Increasing profit margins in international ops 2016 2015 15% 22% Forecasting compliance, tax 2016 2015 14% 15% Realising the desired ROI in Asia Pacific 2016 2015 14% 22%
Growth drivers Regional investment, 2016-2017 Strategies in China Importance of regulatory conditions
53% APEC CEOs plan on increasing investments over the next 12 months 2016 2015 Investments will increase Investments will stay the same 33% 35% 53% 53% 31% of increase to rest of the world 69% Investments will decrease 10% 8% of increase going to APEC 21 economies Don't know 3% 3%
Most APEC CEOs plan to raise investment at home, but diversification is also apparent for 2016-2017
Most APEC CEOs plan to raise investment at home, but diversification is also apparent for 2016-2017
Looking to attract cross-border investors? Work on your economy s regulatory conditions Factors that matter most to CEOs investing across APEC borders today In 2011, dynamic markets were enough for more APEC CEOs to unleash investment
The new competitors to watch
APEC CEO outlooks for China s GDP growth over next three years vary widely Business leaders in China, both domestic and foreign, are gravitating toward three strategies to adapt to new market realities. #1 Increase collaboration with partners (48%) #2 Focus on building brand (42%) #3 Expand geographically within China (41%)
Some APEC CEOs note gains in 2016, yet most say progress in Asia- Pacific free trade is slow
About Peru & the Pacific Alliance
CEO Confidence in Peru, Mexico and Chile Prospects for revenue growth in 2016-17
What s changed with CEO confidence in Peru? 16
Regional capabilities are becoming the benchmark for Peruvian APEC CEOs 17
Top 5 factors for CEOs investing across APEC economies 18
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